Las Vegas Activity Report

Construction Market’s Disappearing Act Persists, for Now

With several large-scale projects wrapping up at the end of the year, what’s next for Las Vegas?

The $8.5-billion CityCenter in Las Vegas is scheduled to open in December. (Photo courtesy Kirvin Doak Communications)

What do the $8.5-billion CityCenter, the $750-million Hard Rock Las Vegas and the $150-million Golden Nugget expansion have in common? All three will leave the construction trades high and dry come the end of this year as these three mega-projects wrap up. With several other casino/resort projects still on hold, contractors are doing what they can to keep their crews working.

There are glimmers of optimism. Economists are starting to see the tide turn and if consumer confidence soon follows, the declines in tourism that Las Vegas has experienced recently may be stemmed. Also positive: McGraw-Hill Construction reports $561.5 million in contracts for future construction in June, an 81% jump over the same month last year. A closer look however shows that most of the gain is accounted for by a single project: the groundbreaking for the $475-million Smith Center for the Performing Arts. The Whiting-Turner Contracting Co. project is being built in downtown Las Vegas within the 61-acre development recently renamed Symphony Park.

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Still, the same McGraw-Hill report (published by the parent company of Southwest Contractor) shows cumulative year-to-date non-residential construction contracts totaling $2.28 billion, a 24% rise over the same period last year.

This year’s Las Vegas Activity Report takes a closer look at the Golden Nugget expansion and examines the floundering office, retail and industrial sectors in more detail. Our developer spotlight examines how venerable Las Vegas firm Marnell Properties is faring during the recession and what future projects are in store. In this same issue, you can find profiles on two Las Vegas schools, the Veterans Tribute and Southwest Career and Technical Academies, in the K-12 education section.

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